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mrcautious .. lol.
The BBC should be paying you to watch East Enders !
Wabu, the problem is that the payment of $250K pcm has coincided with other cashflow issues. Obviously the period from March to June when oil prices went through the floor created a difficulty. When we got the export licence for MJF we also went from being paid in advance by local traders to being paid in arrears for our export sales. Local traders also wanted to paid back during the covid period which we are largely doing in oil rather than cash. There are also problems with drilling obligations under licence agreements which increase our outgoings, although we are attempting to negotiate our way out of this. Finally 300 bopd of output from the Yelemes field is suspended while we apply for an export licence (expected soon), and we have just acquired a $60K pcm liability with the boat.
This all sounds a bit negative but in actual fact the situation is righting itself in the second half of the year with output likely to rise over 2000 bopd by December and maybe moving up towards 2500 bopd. With current oil prices and export percentages we are likely to manage a revenue in the $6-7m range for the second half of the year and with the cashflow position resolving itself should be able to afford more MJF drills next year.
And then of course there are always the deeps and the possibility of leasing out the boat, but no-one is counting on that at the moment!
Wabu, yes exactly. The deal is you pay 1%-5% of the lease cost when you start exploring. As soon as you start commerical production from *that license area* a.k.a BNG the remainder becomes due to paid over a 10 year period.
Their argument is that as they only produce from MJF (1% of BNG) so the fee should be adjusted pro-rata ... which is ****** in my view
If I only watch Eastenders on the BBC should my license fee be adjusted pro-rata too. An outrageous analogy, Clive would say, but it makes the point.
That said, if some lawyer can get a reduction in fees then I'm not complaining as a shareholder.
Adrianz, thanks. So like a "lease" for the right to extract?
Wabu, Casp are disputing the historic costs which became due when they put MJF in production. They are paid over a 10 year period at $250k/month. We've already been paying for 13 months so far ... and it's never been a problem.
Casp now think it should be around $25k/month. The court case is being used as a stick to get the state to recalculate the costs.
Agreed Adrianz. No sure how this will go though, I think we will have a quiet few weeks, no RNS and then at some stage the market being notified the matter is sorted or a court decision pending. I do understand folks frustration but as I have stated numerous times the current SP is a steal, even better last week. Don't even think about the CE, that's just a small part of the picture but definitely a bargain buy despite what is being stated.
I am a long term holder and suddenly I see talk of a court case. What is it about? Can't find an RNS on the subject.
Jamesey , the state might want to settle out of court because if they lose it will set a new precident and then every Tom will want their historic costs recalculated. I expect lots of discussion taking place now. I hope they can come to a mutally beneficial settlement. A short term win at the cost of a long term relationship with the state is not really a win.
Not trying to be negative, just been in here a long time, should have sold at the start of covid and fed up with the lack of progress. If the deeps are the game changer why keep changing the game in other directions? Never been happy with 3A and CE.
Hi Ade2017
Do you know when it goes to court for the final decision or when the next hearing is ? TIA
Where have you been. The latest RNS was not negative, any dilution is felt by everyone , more so those will more shares. As I stated on this BB a week ago 1.5 was the lowest it was going to be, it has increased over the past week. I'm not going to get in to a debate about the company that's for folk to do there own research. What I will say is that things will be quiet until the court case has a decision but I'm sure they SP will continue to rise before an outcome in the Courts, a favourable decision would be huge, same again do you own research.